Fintech Impact


MX with David Whitcomb | E243

Ep. 243

Jason Pereira talks to David Whitcomb, VP of Product at MX. It is an aggregator of aggregators in that it provides tech companies & traditional finance companies with a way of accessing a common data format across multiple different data aggregation companies & kind of pulls into data from all includes above and spits it up.

Episode Highlights

  • 1.00: MX not only connects with other aggregators, but the company also connects directly with some of the biggest things in North America for direct API access. 
  • 6.08: Once the data is refined and is in enhanced state, MX creates personal financial management tools out of it. 
  • 9.00: To the average consumer, they are starting to see if they haven't seen the new grading technology in MX which allows them to put the transactions from the bank account or their investment accounts into an app or into a dashboard or into some other places, says Jason. 
  • 10.15: MX has created a ton of intelligence around grabbing different data models, specifically around the council transactions. Normalizing the transactions, adding content to it around categorization classification of what the transaction is so that when a user of MX product or service gets the output of that account transaction we have, we've normalized all of it and have an often typically enhanced it so that it's more readable and more usable for whatever is being built, says David. 
  • 14.04: Everyone is getting into the payments world, which means a person is connecting their accounts at lots of different places and in many cases those connections then create a council of their own, says David. 
  • 25.02: With the shifts in the way payments are being made or with the shifts in the way consumers are engaging payments, we sell a lot of data that can enable our stuff. We are accessing account numbers, routing numbers to enable some of those use cases. We see that by ensuring that the data we have is leveraged in the right ways.

3 Key Points

  1. David and Jason discuss about data normalization. When data is received directly from the bank, VN, API, or via another aggregator, the data is in often different formats. It often has different values added into it or different parameters to that transaction; David explains how MX helps to simplify the entire process. 
  2. David shares how they use multiple layers of analysis. They have been using human intelligence in conjunction with computer analysis for the past decade.
  3. David explains what proprietary and competitive advantage is and what is the consumers data. 

Tweetable Quotes

  • "So historically, personal financial management has been what I would say is called financial literacy." - David
  • "I think a lot of people are finding themselves there, and with tools like MX offers, it allows you to centralize that stuff more quickly so that you can effectively manage." - David

Resources Mentioned

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Sensedia with Marcilio Oliveira | E252

Ep. 252
In today's episode of Fintech Impact, we have Marcilio Oliveira, Co-Founder of Sensedia. It is a platform that provides API access through microservices for different financial institutions around the world, basically connecting them seamlessly. They are helping the enterprise companies around the world to become more connected, open and digital using the modern integration platform and API.Episode Highlights1.03: Marcilio says that they created Sensedia 15 years ago to help companies to modernize their enterprise sectors. 1.14: In last ten years we have been 100% focused on API management platform to help companies to connect the core data in digital experience, partner journeys and innovation and in the last five years we created a nice, specialized solution for financial institutions, says Marcilio.3.08: The connection between the legacy system with mobile apps, with ecosystems from partners and with different kind of digital experience or digital behaviors is done using API.6.32: Companies are looking for Sensedia when they are trying to evolve the digital experience or part integration ecosystem positioning for open banking service, or they are looking for innovation.7.53: FTX conference in Dallas was amazing because we have around hundred financial companies there and all of them trying to discuss about strategy, not only about Tech, says Marcilio.8.04: API is a tech subject, and it supports new business model, new functionalities, new partners model and new positioning.15.40: Many banks have created their own API management plan because they are using these as internal APIs.16.04: All the financial institution will be part of one or more ecosystems because they have a chance to be the heart of the ecosystem to create their own ecosystem by exposing API.19.05: As per Marcilio, we are going to nice space where everyone needs to be a part of ecosystem.20.03: Companies should be more open and digital and connected and not looking for tech or for business strategy.3 Key PointsMarcilio shares what is the percentage of existing institutions that were non digital before and converting over versus native Fintechs that have come into the market?Fintechs are not looking for a hard discussion about tech integration. They are looking for the good experience in the digital world. So, we have invested a lot in digital experience for the companies beyond the API, says Marcilio.Marcilio shares his thoughts on where is the lack of openness? Is it a reticence of companies entering the space like departing from their norms of keeping things closed and being very defensive with data?Tweetable Quotes"We are focusing the enterprise companies. We are looking for the traditional companies and usually they are asking for our help in three different scenarios." – Marcilio"The open banking is not about regulation, it's about movement and in my perception, Canada will move fast about regulations." – Marcilio"If the company is looking for position as the central of ecosystem, they need to improve the developer experience." - Marcilio"Technology is not a strategy. Technology is there to enable your strategy." - Jason "My motivation is when I explain stories about customers and people show interest to listen more. I love to share stories from achievement with good customers." – Marcilio.Resources MentionedFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's – SponsorLinkedIn – Jason Pereira's LinkedIn Editing

Finclusion with Timothy Nuy | E251

Ep. 251
Jason talks to Timothy Nuy, Founder and Co-CEO of Finclusion. The company is an African based neobank that is basically tackling a lot of the structural issues in banking in Africa in a digital way. Episode Highlights1.11: Today our lending products predominantly are either employed or merchant distributors ranging from earned wage access to payroll loans and from buy now pay later to merchant lending facilities, says Timothy.2.06: Timothy explains how he predominantly distinguish clients with our AI based credit scoring where they have consistently outperformed the markets from a collections and repayment perspective on the back of our scoring models.5.14: The traditional data is oftentimes not available on our type of supply and field. Also, the easily accessible credit score, simple repayment behavior isn't available. What is available is a whole lot of different data points that by themselves aren't actually predictable, says Timothy.9.03: Timothy explains how does the business side of the business differ from the personal credit scoring?11.10: Pledging security it depends on the market. In some markets it works, many other markets it doesn't. But depending on the relationship we can take a risk.13.01: One of the benefits of building some of the infrastructure in Africa from scratch is that infrastructure gets built based on modern day design principles.14.17: Buy now pay later has been something that has largely been a newer innovation in the Fintech space and within the last 24 months it's really taken off, says Jason.15.02: Today we can offer credit better than anyone else, but that's a leap. IT doesn't mean we'll always be better than anyone else, says Timothy. 16.01: We basically unconverted ownership of a client into our world and really achieve long term client stickiness, says Timothy.17.07: Timothy would love for the African rails to work as well as they do in India where you could just digitally verify anyone's identity and get access to their data in a readily simple, straightforward way.17.51: Getting people brought into the company culture and building together, creating that feeling of togetherness without actually being able to be together in the same office has probably been the hardest thing to do, says Timothy.19.20: Africa has been in the loss from probably the last 30 years. But Timothy truly believes it is going to convert and end up in the same space as a Brazil or China or India.3 Key PointsTimothy talks about the core problem that has to do with the AI based models on credit scoring you deal with in Africa compared to more developed nations like the US and UK.Timothy’s company does future wage access where they give you a loan which you can repay over 12 to 24 months using about 30% of your income as a maximum installment.The reality of not being able to pay for goods and services at checkout is a much bigger problem in the African population than the rest of the world.Tweetable Quotes“I feel there is no one really addressing the credit gap effectively with products and solutions that truly address the market needs on the ground and we could make a real difference.” -Timothy“We work with any employer more than 200 employees, but we prefer to work with larger employers.” – Timothy“No one would ask you for your house title for a small loan in the rest of the world probably via emerging markets where there's still an opportunity.” - TimothyResources MentionedFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's – Sponsor

Episode 250 with Guest Host, Guy Anderson | E250

Ep. 250
In today's 250th episode we have guest host, Guy Anderson to interview Jason Pereira. Guy asks Jason what he has learned till now and where he is going from this point. Episode Highlights2.08: There are a lot of integrations in the US market, but Jason would actually refer to a lot of those integrations as borderline superficial.3.25: As per Jason there are a couple of ways to look at big trends. We can contrast the US market versus elsewhere because in US market everybody got baseline technology.4.35: If you went too far and just focused on digitizing and optimizing your process without focusing on how you can provide deeper, greater value to a client, you didn't do yourself a service in that regard, says Jason.5.24: In the developing markets, Jason is seeing a lot of unique and interesting ways of trying to get more people access to financial services, which is enormously important.8.40: The longer you depend on a system the more likely you are to depend on it for a longer period of time, says Jason.9.23: One of the single biggest bottlenecks with old systems is the inability to get the data open and out and then put into something elsewhere.11.28: Netflix and all that were big examples of technology uptake during COVID where people were using streaming systems. Jason explains whether he saw an uptake in Fintech adoption during COVID or not. 16.54: Flow charts technology to basically make a decision or to basically confirm that the planning solution you make is solid, that is foundationally found fantastic nudge.21.55: To monetize open banking, they're going to figure out a way to monetize it through the companies that are giving it to you, which is going to basically come back to you through fees, says Jason.23.31: When Jason started four and half years ago, Fintech was new term and we were in a big hype cycle at the time and he was seeing solutions left, right and center, novel things and different ideas but that's slowed down because the industry had hit maturity plateau at this point.28.33: Jason sees a world where money or decisions with money are going to be minute and the challenge is that this is a cognitive burden on humanity. 31.45: Google basically gives you every financial service for free and monetizing out the data and that should be scared to every sector of finance. 3 Key PointsJason talks about the challenges that he has seen in the sector that perhaps are limiting the advance of some of the Fintech companies.  When it comes to how to digitally transform businesses, many institutions don't have internal people that can think at higher level and nor the incentives designed to do that, says Jason.In Canada Jason had released the paper on open banking framework and when he started reading it, he stopped reading it very quickly because timeline set out was completely unrealistic.Tweetable Quotes"There is a lack of surprisingly digital on-boarding systems that exist in any country." – Jason"There is no way that we are going to meet the demand for developers in the future." – Jason"It's hard to teach an old dog new tricks sometimes." - JasonResources MentionedFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's – Sponsor